H1 FY25 Trading Update
H1 FY25 revenue $100.0m (+10%), adjusted EBITDA $30.3m, ARR $177m (+3%), debt reduced to $31.6m.
vs expectations: in line
- Revenue $100.0m (prior $91.2m)
- Adjusted EBITDA $30.3m (prior $27.5m)
- Annual Recurring Revenue (ARR) $177m (prior $171.4m)
- Total bank debt $31.6m (prior $59.2m)
- Total cash reserves $72.2m (prior $63.9m)
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13 January 2025 - Craneware (AIM: CRW.L), the market leader in Value Cycle software solutions for the US healthcare market, is pleased to provide an update on trading for the six months ended 31 December 2024 ("H1 FY25").
Trading Update
The Group has enjoyed another period of positive trading, meeting management's expectations of double-digit growth of c.10% to exceed $100.0m of revenue (H1 FY24: $91.2m), and adjusted EBITDA1 of c.$30.3m (H1 FY24: $27.5m). Annual Recurring Revenue ("ARR2") has, so far, grown by approximately 3% to c.$177m (H1 FY24: $171.4m), with continued sales momentum and Net Revenue Retention above 100%. These sales have included continuing success of the Trisus Platform Partner offerings, and the first major customer contract secured via the Microsoft Azure Marketplace.
The Group continues to deliver high levels of operating cash conversion, which has been used to invest in our product portfolio, reduce debt and interest costs, with total bank debt reduced to $31.6m (H1 FY24: $59.2m), whilst retaining healthy total cash reserves of $72.2m (H1 FY24: $63.9m).
NED Appointment
The Company is pleased to announce the appointment of Susan Nelson as Non-Executive Director, with effect from 16 January 2025. Susan is an experienced senior US healthcare executive currently holding the role of Executive Vice President and Chief Financial Officer at MedStar Health, an $8.3 billion integrated healthcare system in the Maryland and Washington, D.C. region. MedStar Health is the medical education and clinical partner with Georgetown University. Susan's role includes responsibility for the health care system's finances, including reporting, planning, revenue cycle, capital management and investment activities, managed care contracting, business transformation, business development, enterprise analytics and performance improvement.
Outlook
Following the election, US hospitals are now expecting a period of stability and investment in strategic growth, which the Board anticipates will provide a sustained demand environment for Craneware's offerings.
The strength of the Company's balance sheet, high levels of recurring revenue and strong cash generation provide Craneware with solid foundations, and the ability to fully absorb the impact of National insurance increases in the United Kingdom, as it executes on its growth strategy, capitalising on its strategic position at the heart of the US healthcare market. As a result, the Group continues to trade in line with current market expectations for the year ending 30 June 2025 and is pleased with the accelerated growth delivered in the period.
Notice of Results
Craneware will announce results for the six months ended 31 December 2024 on 11 March 2025.
Keith Neilson, CEO of Craneware plc, commented,
"We are pleased to have delivered another healthy first half performance, demonstrating our continued progression to sustainable double-digit growth, as customers increase their use of our Trisus platform and platform partner offerings. The pace of innovation taking place across our organisation in collaboration with Microsoft and Oracle is considerable, and we look forward to stepped increases in our joint marketing initiatives in the coming months.
"With our prior sales successes now converting into ARR growth, continued strong cash generation and an increasingly strategic position as powerful source of independent data and insights at the heart of the US healthcare market, we look to the future with confidence."
2 Annual Recurring Revenue ("ARR") includes the annual value of licence and transaction revenues as at 31 December 2024 that are subject to underlying contracts and revenue is being recognised.
Additional information
The following information is being disclosed pursuant to Rule 17 and paragraph (g) of Schedule 2 of the AIM Rules for Companies in relation to the appointment of Susan Nelson to the Board.
Susan Kay Nelson (previously Susan Kay Longshore), aged 58, has been a director or partner of the following companies or partnerships during the five years preceding the date of this announcement:
| Current: · Church Home and Hospital of The City of Baltimore (formerly known as Church Home and Infirmary of The City of Baltimore) · Church Home Corporation · Chesapeake Regional Information Systems for our Patients Inc (CRISP) (formerly known as Chesapeake Regional Information for Our Patients, Inc) · Greenspring Financial Insurance Limited · Healthcare Financial Management Association · Helix Resources Management, Inc · HH MedStar Health, Inc. (formerly Helix Health, Inc.) · Maryland Hospital Association Council on Financial Policy · MedStar Family Choice, Inc. (formerly Helix Family Choice, Inc.) · Parkway Ventures, Inc. (formerly Helixcare, Inc.) · Shah MSO JV | Historic: · JDRF Greater Chesapeake and Potomac Chapter |
Learn more at www.thecranewaregroup.com
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.